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UBS sees UK stocks as selectively attractive amid earnings strength but sentiment drags market.

Market News
03 Jun 2026
Proactive Investors
View Source
Neutral
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UBS describes the UK equity market as an "incomplete plate," favoring selective stock picking over broad index exposure. Earnings are the strongest support, especially in energy and pharmaceuticals, while sentiment remains a drag. The FTSE 100 shows signs of recovery, but the FTSE 250 faces challenges with a downturn in PMI and real estate weakness. UBS recommends focusing on cash-generative, dividend-paying companies and inflation-resilient sectors like energy and materials. UK GDP growth is forecast at 1% for 2026, with inflation at 3.1%, and the Bank of England is expected to cut rates in early 2027.

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